Government approves new Minimum Wage rate for October 2009

The Government has agreed to a new set of National Minimum Wage rates recommended by the Low Pay Commission.

From October 2009, the standard rate will increase from £5.73 to £5.80.

The rate for 18-21 year olds will rise to £4.83 and that for 16-17 year olds to £3.57.

From October 2010 those aged 21 will be entitled to the standard rate of the NMW.

UPDATE in May 2010

National Minimum Wage rates

From October 2010, National Minimum Wage rates will increase from:

• £5.80 to £5.93 an hour for workers aged 21 and over
• £4.83 to £4.92 an hour for workers aged 18 to 20
• £3.57 to £3.64 an hour for workers aged 16 to 17

The rise is around the two per cent mark in each category. As promised, the Government has extended the adult minimum wage rate to 21-year-olds from October 2010. Previously the qualifying age for the National Minimum Wage was 22.

The Government has also set an apprentice minimum wage rate at £2.50 an hour